Oct 16, 2018 at 10:25
Oct 16, 2018 at 10:25 UTC
Problems Related to Ethereum
The distributed ledger technology of Blockchain offers innovative solutions for safe, secure, as well as decentralized transactions. Blockchain is also the underlying technology that underpins various cryptocurrencies like Bitcoin, Litecoin, Ethereum and more. In fact, ever since the invention of Bitcoin, these digital currencies have been revolutionising the way humans transact with each other. With the aid of cryptocurrencies, today, we can trade with an unmatched level of transparency as well as security that was never possible before. Hence, humanity is moving away from the controls and regulations imposed by central authorities.
Ethereum is not just a platform for peer-to-peer digital transactions, in fact, the Blockchain-based, public, and distributed computing platform offers much more flexibility. Ethereum also offers wider deployment of the Blockchain technology through Smart Contracts. As a result, Ethereum has become one of the most famous Blockchains, and the traffic on its chain has increased exponentially ever since its inception.
Smart Contracts by Ethereum have enabled the development of several other digital currencies on top of Ethereum’s Blockchain. Therefore, a lot of businesses today rely on Ethereum’s Blockchain for their day to day transactions.
The primary issue with Ethereum is that the increased number of transactions on its Blockchain have adversely impacted the transaction processing rate of Ethereum’s Blockchain. As a result, the scalability of the technology faces a potential threat.
It was found that the congestion due to the increased traffic makes the verification of transactions very time-consuming and the users have to often wait for hours. In fact, the transaction per second speed on Ethereum’s Blockchain is quite low. The growing Blockchain entails that size of the Blocks also keeps increasing. Since each node is required to have the entire data Blockchain state for the purpose of processing and verifying transactions, hence the process becomes increasingly difficult and time-consuming.
Even though there are several complex challenges that come in the way of making transactions swifter and more seamless, however there are actionable solutions to the problems faced by Ethereum’s Blockchain. While some of these solutions can compromise the level of decentralization that the Ethereum platform offers, yet they still are able to decrease the rate of transactions and make them more secure. In the times of today, the need to explore and develop tried and tested solutions for Ethereum’s Blockchain is the need of the hour. These solutions will not only improve the transaction rate, they will also make the Ethereum Blockchain more scalable.